Diploma in Management - Essay Example

A control system is necessary in an organisation in which activities of certain departments, divisions and sections needs to be coordinated and controlled. Most control systems are past-action-oriented and consequently are inefficient or fail. For example, there is little an employee can do today to correct the results of actions completed two weeks ago. Steering controls, on the other hand, are future-oriented and allow adjustments to be made to get back on course before the control period ends.

They therefore establish a more motivating climate for the employee. Although many standards or controls are simply estimates of what should occur if certain assumptions are correct, they take on a precision in today's control system that leaves little or no margin for error. Managers would be better off establishing a range rather than a precise number and changing standards as time passes and assumptions prove erroneous. This would be fairer and would positively motivate employees. There are three fundamental beliefs underlying most successful control systems.

Virtual organisations are small, core organisations that out source major business functions. In structural terms, the virtual organisation is highly centralised with little or no departmentalization. The example of a virtual structure is today's movie making organisations. . This would be fairer and would positively motivate employees. There are three fundamental beliefs underlying most successful control systems.First, planning and control are the two most closely interrelated management functions.

Second, the human side of the control process needs to be stressed as much as, if not more than, the tasks or 'numbers crunching' side.Finally, evaluating, coaching, and rewarding are more effective in the long term than measuring, comparing, and pressuring or penalizing.Management Control in a virtual structured organisation vs. vertical organisation.Virtual Organisation:Virtual organisations are small, core organisations that out source major business functions. In structural terms, the virtual organisation is highly centralised with little or no departmentalization.

The example of a virtual structure is today's movie making organisations. In Hollywood's golden era, movies were made by huge vertically structured organisations. Companies such as MGM, Warner Brothers and 20th Century Fox owned large movie areas and employed thousands of full time specialists like set designers, camera people, film editors, directors and even actors. Nowadays most movies are made by a collection of individuals and small companies who come together and make films project by project.

This structural form allows each project to be staffed with the talent most suited to its demands, rather than having to choose just from those people the studio has employed. It minimizes bureaucratic overhead since there is no lasting organisation to maintain. And it lessens long term risk and their costs because there is no long